Gogo Inc. (NASDAQ:GOGO) saw its stock rise by 8% in early trading Wednesday after announcing a pivotal advancement in its 5G network rollout: the successful completion of its first end-to-end call using next-generation 5G technology.
The test call, conducted on June 16, confirmed the full functionality of Gogo’s new 5G chip developed by GCT Semiconductor (NYSE: GCTS). This milestone marks an important progression as Gogo moves closer to providing 5G air-to-ground connectivity to business aviation clients across North America by the end of 2025.
The microchip was delivered to Gogo’s partner, Airspan, in May, enabling seamless integration into the company’s hardware and software systems. Laboratory tests validated the chip’s performance, setting the stage for the upcoming phases of field testing.
William Blair analyst Louie DiPalma, who rates Gogo shares as Outperform, noted, “This key achievement is expected to boost investor confidence and support higher trading levels today.”
Gogo has already secured FAA approval for its AVANCE LX5 Line Replaceable Unit and has expanded its 5G infrastructure with 170 towers across the U.S. and parts of Canada. Over 300 aircraft have been pre-equipped to receive Gogo’s upcoming 5G services.
CEO Chris Moore described the chip’s validation as a “significant accomplishment” and reiterated the company’s goal of delivering robust 5G connectivity to customers before year-end.